The U.S. Small Business Administration issued new interim guidance for the 8(a) Business Development Program (BFPOB) in response to a ruling by the U.S. District Court, which impacts how social disadvantage is determined in the program. In collaboration with the Department of Justice, the SBA is also furnishing federal agencies with detailed interim guidance on issuing 8(a) contract awards during the year-end acquisitions period, according to an Aug. 21 news release.
"The SBA is proud of our work to promote equity and level the playing field in federal procurement to attract a diverse supplier base and ensure competition, innovation and performance," SBA Administrator Isabella Casillas Guzman said in the release.
The 8(a) program, spanning nine years, assists businesses owned by socially and economically disadvantaged individuals to grow their federal marketplace presence through training and technical assistance. The program has gained bipartisan support over decades and multiple administrations, aiding the progress of small disadvantaged businesses, the release reported.
President Joe Biden set a goal to award 15% of federal prime contracting to small disadvantaged businesses by fiscal year 2025, with the 8(a) program contributing significantly to this objective. The program has played a vital role in boosting small business contracting and job creation under the Biden-Harris administration, the release said.
The U.S. District Court's decision in Ultima Servs. Corp. v. Dep’t of Ag. July 19, has implications for the eligibility determination process of the 8(a) Program. Current participants will receive direct communication from the SBA regarding any additional information needed to maintain their participation, according to the release.
Those working on 8(a) applications may need to make adjustments, with clear guidance from the SBA. A hearing scheduled for Aug. 31, following the court's ruling, may lead to updated guidance from the SBA as necessary, the release said.
